Some Insurers on ACA Exchanges Plan To Hike Premiums by 30%

Official requests submitted to the government

You can’t exactly call it sticker shock since everybody’s seen it coming. Now, however, it’s official as HHS published preliminary rate requests yesterday. Major insurers in some states want to raise premiums on the ACA exchanges by nearly 30%, the Wall Street Journal reports.

Idaho, West Virginia, South Carolina, Iowa and Wyoming are in the 30% range. Meanwhile, New Mexico, Tennessee, North Dakota and Hawaii plan on hiking premiums about 20%. Then there are those insurers who are “looking for more limited premium increases for the suites of products they offer in individual states, reflecting the variety of situations in different markets. Health Care Service Corp., a huge exchange player in five states, filed for average increases including 8.3% in Oklahoma, 23.6% in Texas, and 16% in Illinois,” the WSJ reports.

Insurers for the most part are still wary about the uncertainty surrounding health care, as Republican lawmakers have tried and so far failed to repeal and replace the ACA. Among other things, health plans worry whether the subsidies paid by the federal government to help insurers serve poorer, sicker populations will continue. President Trump has promised to end those payments. 

The WSJ reports that, “Anthem, which is seeking rate average increases of 30% or more in states including Colorado, Kentucky, Nevada and Virginia, has said it would refile for bigger hikes and may pull back its exchange offerings more if uncertainty continues around issues including the cost-sharing payments.”

Source: Wall Street Journal